Japanese investment bank Nomura Holdings has rejected reports claiming an internal probe into its India fixed-income business over alleged profit inflation.
Earlier reports by Bloomberg News, citing unnamed sources, suggested that Nomura asked senior officials in its rates division to review whether profits had been overstated in recent years.
Nomura Clarifies the Situation
In a statement to Reuters, Nomura said:
“We categorically deny that there is any investigation by compliance into the issues described. No such problems have been found in regular reviews of our STRIPS business.”
Understanding STRIPS
STRIPS (Separate Trading of Registered Interest and Principal of Securities) allow dealers to sell the principal and interest of bonds separately.
In June 2025, the Reserve Bank of India (RBI) approved STRIPS trading for state government bonds, opening new opportunities for investors.
Concerns About Profit Reporting
Bloomberg had highlighted that STRIPS trading could be misused in some cases to inflate reported gains, raising concerns about accounting practices. Nomura’s clarification comes amid this backdrop, emphasizing that their business is under regular compliance checks.
